Emami enters into agreement with Zandu promoters

PTI|

Oct 16, 2008, 10.17 PM IST

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MUMBAI: Emami , a leading personal healthcare company in the process of acquiring Zandu Pharma has reached an agreement with the promoter family of Zandu , both the companies announced today. The agreement will eventually result in Emami getting to take over over 100 year old Zandu Pharma.

A press note issued by the companies said Zandu Pharmaceutical Works , its Promoters and Emami Ltd have entered into a Share Purchase Agreement for certain shares owned by the existing promoter group of Zandu, the Parikh family, to Emami.

" As a result of this agreement, Emami has purchased an additional 18.18 per cent of Zandu and will become its largest shareholder, and this transaction effectively paves the way for Emamis acquisition of Zandu. The consideration received by the Parikh family is Rs 15,000 per share and a non-compete fee of Rs 22 crore," the press note said.

Commenting on the transaction, Harsh V Agarwal, Director of Emami said," We are completing this transaction at a time when panic and pessimism in the global financial markets have forced our competitors to act defensively. We view this transaction as an important step in the growth of Emami and believe that Zandus product line will provide us with opportunities in markets in India and across the world."

" I am happy with the arrangement and feel confident that the shareholders of both companies will derive maximum benefit from this consolidation," Managing Director of Zandu, Girish G Parikh, said.

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